1. U.S. Department of Energy Rhonda Lindsey, Senior Project Manager National Energy Technology Laboratory Class II Shallow-Shelf Carbonate Reservoirs

2. Reservoir Class Program  Program Goals:  Slow oil well abandonment rates and preserve industry infrastructure  Demonstrate improved methods of reservoir characterization, advanced oil recovery, advanced environmental compliance techniques, and improved reservoir management techniques  Broaden information exchange and technology application among stakeholders  Program Benefits:  Extend economic production of domestic fields  Increase ultimate recovery in known fields  Increase domestic oil reserves  Decrease cost of environmental compliance

3. The DOE Report on Field Demonstrations presented to the National Research Council in November 2000 stated that the realized benefit in production and taxes returned to the government was $30.5 billion for $136 million spent These Projects Have More Than Returned The Cost To Fund Them *Page 62, U.S. DOE Report, November 2000

4. Reservoir Class Program  Accomplishments:  The University of Utah with Aera Energy successfully reestablished production in an abandoned lease. Production from the 40-acre property has risen to over 1,200 bopd and in 5 years over one million bbl of oil has been recovered. The adjoining leases have a potential for 80 million bbls of oil.  University of Kansas: Stewart Field has shown an 11-fold increase in oil production since 1993. Significant cost savings have been realized at Savonburg Field.  Hughes Eastern extended the life of North Blowhorn Field, AL by 12 years with MEOR  Laguna Petroleum Corporation extended reservoir life of South Cowden and Foster Fields, TX by 7 years, and identified 570,000 bbl new reserves through seismic interpretation  Michigan Tech. University drilled the 1 st horizontal well in the Michigan Basin. Over 20 permits were issued to drill “look alike” prospects in the Michigan Basin.

5. Midway-Sunset Field, CA University of Utah  Steamflood of the Pru Fee property

6. Savonburg Field, KS University of Kansas  Injection water quality was improved by 90% reduction in solid-using air flotation unit

7. North Blowhorn Field, AL Hughes Eastern  Nutrient injection for microbial enhanced recovery

8. Foster & So. Cowden Fields, TX Laguna Petroleum  Infill well, Foster lease

9. Crystal Field, MI Michigan Technological University  Drilling Michigan’s first horizontal well

10. Class II Shallow-Shelf Carbonate Reservoirs  9 field demonstrations in shallow-shelf carbonate reservoirs were selected and awarded in 1994  6 additional projects in Class II were selected and awarded in 2000

11. Class II Projects

12. The Future of Field Demonstrations  DOE will continue to support field demonstrations through the Advanced Technologies Initiatives targeted toward the needs of independent producers  Reservoir Characterization is essential  Technology Transfer is essential  Good Ideas are essential – Thanks go to those who brought us the great ideas